No CVM (Cardholder Verification Method)

No CVM (Cardholder Verification Method) refers to specific types of credit card transactions where no method of verifying the cardholder's identity is used during the transaction. Typically, these transactions are allowed under certain conditions that reduce the risk of fraud, such as having low transaction value thresholds.

The rationale behind No CVM transactions is to streamline the payment process in situations where speed and convenience are prioritized, such as transit systems, vending machines, or small retail purchases. By eliminating the need for PIN entry, signature verification, or other forms of cardholder identification, transactions can be completed more quickly and efficiently.

However, to balance the increased risk associated with not verifying the cardholder's identity, these transactions are usually limited to smaller amounts. The specific threshold varies by card network and region but is generally set to minimize potential losses from fraudulent transactions.

No CVM transactions are supported by most modern payment systems, including contactless payment technologies, where the card or payment-enabled device only needs to be tapped or held near a reader to complete the transaction. This method is becoming increasingly popular due to its convenience, especially in fast-paced retail environments and in regions with high adoption of contactless payment technology.